Localiza Rent a Car (RENT3) investor relations material

Executive summary

• Delivered record Q1 2026 net income of R$1.2 billion, up 45% year-over-year, driven by strong operational performance, disciplined planning, and portfolio optimization, including a R$177 million after-tax gain from subsidiary divestments.

• Consolidated net revenue reached R$12.3 billion, up 21.2% year-over-year, with robust growth in Car Rental, Fleet Rental, and Seminovos segments.

• EBITDA rose 23.7% to R$4.1 billion, with margin expansion across all segments and strong free cash flow generation of R$2.2 billion.

• Maintained focus on restoring ROIC spread, disciplined capital allocation, and investments in brand, technology, and digital transformation, including the launch of an AI-powered application.

• Accelerated digital initiatives and completed rebranding, reinforcing innovation leadership.

Financial highlights

• Net income was R$1.2 billion (+45% y/y); adjusted net income (excluding divestment gain) was R$1.045 billion.

• Consolidated net revenue reached R$12.3 billion (+21.2% y/y); rental revenues grew 6.4% to R$5.1 billion, and Seminovos revenues rose 34.6% to R$7.1 billion.

• EBITDA totaled R$4.1 billion (+23.7% y/y); EBIT was R$2.7 billion (+32.4% y/y), with EBIT margin improving to 54.4% (48.9% excluding divestment effects).

• Free cash flow before interest was R$2.2 billion in Q1 2026.

• Net debt declined by 2.8% to R$30.2 billion; cash position at quarter-end was R$10.9 billion, covering short-term obligations and 86% of debt maturing through 2028.

Outlook and guidance

• Expect strong Seminovos volumes to continue in Q2, with a shift toward higher-ticket vehicles and a return to a 15-month car rental cycle.

• Management remains focused on price recomposition, cost management, and fleet optimization to sustain returns and value creation.

• Active debt management initiatives are expected to further reduce costs and extend debt duration.

• Anticipate mild upward trend in depreciation rates due to competitive dynamics and new entrants.

• Ongoing reduction in severe-use fleet exposure, targeting fewer than 10,000 vehicles by year-end 2026.